Many consider the power to selectively reveal or hide oneself to the world a human right, but it is often abused by criminals, leading to calls for increased government surveillance, which in turn encroaches on the privacy of law-abiding citizens who make up the vast majority of crypto users. Cryptocurrency has a complicated relationship with privacy and criminality, as the power to remain anonymous is often abused by criminals. This has led to calls for increased government surveillance, which can infringe on the privacy of law-abiding citizens. At Consensus 2023, experts from a range of disciplines gathered to discuss how to balance the competing demands of privacy and transparency.
The discussion focused on how new policies, technologies, and risk-based approaches can be used to create a balance between privacy and transparency. It was noted that if cryptocurrency were to truly function as anonymous digital cash, as envisioned in Satoshi Nakamoto’s white paper introducing Bitcoin, it would be in direct conflict with the existing financial surveillance regime.
The experts discussed how to create a balance between privacy and transparency that would be beneficial to both law enforcement and crypto users. They discussed how to create policies and technologies that would protect the privacy of law-abiding citizens while still allowing law enforcement to do their job.
The discussion at Consensus 2023 provided valuable insights into how to balance the competing demands of privacy and transparency in cryptocurrency. To learn more about the discussion and the insights gained, download the full Consensus @ Consensus report.